illustrate a multiple comparison model where both fixed and random effects approaches to the permanent subject effect may be relevant, consider data from Horrace and Schmidt (2000) applied to loglinear production functions.
In Example 11.6 (Indonesian rice farm data) assess gain from introducing AR1 errors (in addition to unstructured errors) in both random and fixed effects bi models. Also find the posterior probabilities that farms 1 to 171 are the best – in terms of having highest bi after allowing for inputs. Which farm has the highest probability of … Read more